Qimonda’s future looks secured following the arrangement of a €325m financing package, which includes a €150m loan from the German Free State of Saxony and a €75m loan from Qimonda’s parent company Infineon.
Memory chip maker, Qimonda will have the opportunity to draw on a €280m state guarantee by the Federal Republic of Germany and the Free State of Saxony.
There has also been a €100m loan from a financial institution in Portugal.
The financing deal ends a week long stand-off between the State of Saxony and Infineon, which potentially had Qimonda’s long term independence hanging in the balance.
Originally Infineon seemed reluctant to match the State's offer of a €150m loan. Infineon has agreed to a reduced commitment of €75m. But yesterday’s deal will come as a major relief, not least because 3,200 Saxony-based jobs were at stake had Qimonda failed.
The funding will be used to step up R&D efforts at centres in Porto, Portugal and Dresden, Germany in bringing the company’s next generation 46nm Buried Wordline technology to production.
“The financing arrangements allow Qimonda to complete its repositioning, ramp up this exciting technology and re-establish its competitive position in the memory industry,” said Kin Wah Loh, CEO and president of Qimonda.
Money will also be spent on its manufacturing facility in Dresden.
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